KyKurmudgeon

A collective 'Ouch!' from university presidents

Presidents of the state's comprehensive (regional) universities appeared before a legislative subcommittee to tell lawmakers that they have already cut the fat and improved efficiency at their institutions due to budget cuts in recent years and to plead for mercy in regard to Gov. Steve Beshear's proposed 12 percent reduction in their budgets. Although they said the would not try to offset all of the budget reduction with tuition increases, a couple of them noted that it would take an tuition hike of more than 20 percent to do so. Here are some more sound bites from the meeting.

After talking about Kentucky becoming a national model following the post-secondary reforms of the late 1990s, Morehead State University President told lawmakers, "The dream is economic prosperity for all Kentuckians. We cannot abandon the dream."

He also said "It can't be a zero sum game. We can't cut our way to prosperity."

"We are the drivers for economic growth," Murray State University President Randy Dunn. "We are the drivers for quality of life issues."

"These proposed budget cuts scare me to death," Northern Kentucky President James Votruba told lawmakers. "In the 10 years that I've been here, I've never seen the stakes so high."

"There is no fat," said Western Kentucky President Gary Ransdell. "There is no belt-tightening. We are well past efficiencies."

Ransdell later added, "We are, after all, Kentucky's solution, not Kentucky's problem."

The presidents found some sympathy from the panel's members. "If we abandon the hope of education, we send a message to our kids there there is no hope," said Rep. Robin Webb, D-Grayson.

And they also heard a suggestion. After acknowledging that the state does need more revenue and making a pitch for a higher cigarette tax, Rep. Mary Lou Marzian, D-Louisville, told the presidents,  "We need the push from the universities and students" to make it happen.

In other words, if the university presidents want more money, they need to help drum up support for a tax increase.

A budget full of pain and credit

Today's column:

FRANKFORT — By my count, applause from the audience interrupted Gov. Steve Beshear’s budget address 28 times.

Of course, my count could be wrong since it was conducted from the comfort of a living-room chair, and the telecast kept being interrupted by severe weather warnings.

But whatever the correct number of interruptions, each round of applause was modest. Heck, tepid would be a better description.

It was as if the assembled state senators and representatives felt an obligation to show the governor a little love even if what they were hearing didn’t enthuse them. (The comparison that came to mind was of an audience taking pity on a comedian whose jokes were bombing.)

Truth be told, there was little or no reason to applaud the budget Beshear outlined Tuesday night. It’s loaded with pain.

For K-12 education, there is the pain of knowing that a “continuation” budget for the SEEK formula really amounts to a cut because it doesn’t account for rising costs.

For teachers, the pain comes from this budget’s failure to provide state money for the raises promised to them by past acts of the legislature.

For post-secondary students, the pain no doubt will take the form of double-digit tuition increases as Kentucky’s public colleges and universities deal with a 12 percent reduction in state funding. Such tuition hikes equate to a tax increase on students and their families.

And even though Medicaid was spared, other social services are being cut at a time when a tanked economy increases the need for them.

Since taking office, Beshear has often compared state government to a family facing hard times. Like that family, he has said, the state needs to tighten its belt, balance its checkbook and cut up its credit card.

This budget certainly tightens the state’s belt — painfully so, as the examples illustrate. Perhaps the pain will be sufficient to prompt lawmakers to seek the relief an increase in the cigarette tax could provide.

But does this budget balance the state’s checkbook and cut up its credit card? Not so much.

Beshear’s proposal would be less structurally unbalanced than the current budget. But any spending plan that uses more than $300 million a year in one-time money is a long way from structural balance.

Beshear repeated his belt-tightening and checkbook-balancing remarks in his budget address. But he left off the credit-card reference. It’s a good thing he did. Talking about cutting up the credit card while handing over a budget proposal that would authorize $1.2 billion in bonded indebtedness might sound just a tad hypocritical.

True, more than $500 million of the total would be agency fund bonds, which means the projects they finance — such as college dormitories — will generate the revenue to pay the debt service.

But the debt service on $660 million of the bonds will come out of the General Fund. (Ironically, such debt service detracts from the state’s ability to cover current expenses with current revenues, thus adding to the structural imbalance of budgets).

So, instead of getting cut up, the state’s plastic may be worn out by the number of swipes Beshear’s spending plan puts it through.

And the project junkies in the House and Senate haven’t gotten their hands on the budget yet. By the time they indulge their habit, don’t be surprised to see Beshear’s modest attempt at moving toward more structural balance completely reversed and the state’s credit card forced into double duty.

A day late

My midweek column, which normally would be in Wednesday's paper, will be published Thursday since the H-L's Wednesday oped page was devoted to Gov. Steve Beshear's budget address.

Little things mean a lot

Sunday's column:

FRANKFORT — Good morning, Gov. Steve Beshear.

Pardon me for once again addressing you personally. But once again, it seems appropriate for dealing with today’s topic: paying attention to the little things.

Your folks need to do a bit better job in that regard.

For instance, in the grand scheme of state government and the billions it spends on a variety of services, a $5,450 traffic light with a turn signal is a little thing.

Unless it’s rushed into service in your Transportation Cabinet secretary’s neighborhood shortly after he takes the job.

Unless he had been asking for a turn signal at that particular intersection for a year.

Unless a Transportation Cabinet review concluded that the volume of traffic at the intersection didn’t justify a turn signal.

Unless Transportation Secretary Joe Prather recently bemoaned the sorry state of the Road Fund in an appearance before a legislative subcommittee.

And unless said sorry state of the Road Fund caused him to cancel an $11 million change order for a highway project in Senate President David Williams’ district.

Under those circumstances, a little old traffic light can become a very big deal indeed.

It can further antagonize a powerful political foe who’s already inclined to stand in the way of some of your plans.

More important, though, is the perception created by the circumstances surrounding this one little traffic light: the perception that wasteful, “good ol’ boy” politics continues to rule in state government despite all the promises you made to voters last year.

You understand that. So does Prather. At least you both professed to get the whole perception thing in your responses to the traffic-light story last week.

“Perception is always the problem with these kinds of things,” you told reporters. And you’re right.

But the thing is, Governor, this traffic light isn’t the first troublesome little thing of your administration.

There was the retrofitting your administration did to make some of Finance and Administration Secretary Jonathan Miller’s past personnel decisions comply with the rules.

Although the mistakes didn’t occur on your watch, the fix did. And it also had that “good ol’ boy,” take-care-of-our-own feel.

Then, there was that firing-rehiring screwup involving Public Service Commission staffers. Someone leaped before looking in that one.

Besides, as your predecessor learned much to his regret, firings and hirings can come back to haunt you if you aren’t careful about following the rules.

And a governor who doesn’t want a lawmaker from his own party to publicly express frustration about secret “wheeling and dealing” on the casino gambling issue — as Rep. Tim Firkins, D-Louisville, did last week — needs to do a better job of the little thing known as communicating.

Taken individually, each of these missteps is a little thing. But the little things are mounting.

They haven’t yet risen to the nickname level. But even a new governor doesn’t get many free passes, and you really can’t afford to blow them all on little things.

Now, back to that traffic light. Even if Prather didn’t order its installation (and absent any proof to the contrary, we have to take his word and yours on that), he should have anticipated the negative consequences and cancelled the order.

Because the little things in life — including a traffic light — really do mean a lot.

Election Day booze and other short takes

1. House Bill 178, which would allow the sale of alcoholic beverages on Election Day, was approved unanimously by the House Licensing and Occupations Committee Wednesday - but not without a bit of joking around. Rep. Arnold Simpson, D-Covington, the sponsor of the bill, said Kentucky's ban on such sales causes businesses near the state's borders to lose customers to neighboring states where no such ban exists. Simpson described the bill as "pro-business, pro-commerce, pro-Kentucky, pro-United States," at which point some male member of the committee prompted the first round of laughter by chiming out, "That's enough for me." (Sorry, I jotting down notes and didn't see who it was.) Rep. Sal Santoro, R-Florence, set the laughter off again by jokingly asking Simpson, "What effect will this have on our bootleggers?" But the best line of all came during the roll call vote on the bill when Rep. Reginald Meeks responded, "I'll drink to that."

2. Senate President David Williams has filed legislation that would change the dates of both the primary election and the filing deadline for political candidates. Senate Bill 3 would move the filing deadline from late January to late April - after the end of regular legislative sessions. The primary would be moved from May to August. It's a good idea, if for no other reason than that it would shorten a Kentucky political season that now runs nearly year-round in three out of every four years. But there is no way a majority of lawmakers will pass legislation to change a filing deadline that now lets them see whether they have opposition before they are asked to cast controversial votes. Not even Williams has the clout to make that happen.

3. House Bill 320, which was filed by Rep. Teddy Edmonds, D-Jackson, would require the Administrative Office of the Courts to provide "intrusion detection systems, fire alarm systems, and panic alarm systems" for the home of any trial judges (district, circuit an family courts) who have been threatened or who believe that their lives or their families lives are in danger as a result of their performance as judges. I'm sure there are instances where providing such protection for judges could be justified, and this bill requires judges to provide the Administrative Office of the Court with credible evidence of a threat before the systems would be installed. But this is the kind of open-ended bill that invites abuses. Besides, if judges deserve such protection at state expense, shouldn't prosecutors get it, too? And how about the police officers who solve the crimes and make the arrests? How far down the criminal justice food chain should the state go?

Stuck in legislative limbo

Sunday's column:

FRANKFORT — In these early days of an election-year General Assembly, it often feels like you’ve fallen into legislative limbo and have been left hanging there day after day after day.

More committee meetings get canceled than are held. Floor sessions, although extremely brief, still offer plenty of opportunity for entertainment from a variety of musical groups.

Nothing much gets done. Activity is at a minimum – except for that House work group studying casino gambling, which has been meeting nearly every day in an attempt (at least from my perspective) to create momentum for Gov. Steve Beshear’s No. 1 priority.

Only a few statement bills (math and science instruction in the Senate, ethics and bullying in the House) and some innocuous, non-controversial measures are moving yet.

Everyone waits, and waits some more. They also make nice to each other, even if a new administration decides an $11 million change order approved by the old administration on the way out the door for a highway project in the Senate president’s district has lost its priority status.

A couple of aside thoughts on that subject:

Although cancellation of the change order may be good public policy, some might think it could turn out to be bad politics for Beshear. After all, Senate President David Williams has a long memory; and there are more important fights to come.

However, the cancellation may be an indication that Beshear is approaching the inevitable confrontation with exactly the right attitude for dealing with someone who has been referred to as the “Bully from Burkesville.”

In essence, Beshear threw the first punch. By doing so, he sent the message that he is neither afraid of Williams nor afraid to use the powers of the governor’s office when he feels it’s necessary.

We’ll see if it works.

But back to legislative limbo and the waiting, waiting, waiting.

Everyone knows why we’re waiting, and it’s not just to see how painful the budget Beshear proposes on Jan. 29 will be.

But Jan. 29 is the magical, mystical date the wait will end because it is also the filing deadline for this year’s elections. At 4 p.m. that day, incumbent lawmakers will know whether they will face any challengers.

Only after that hour passes will we start to learn where the legislative equivalent of IEDs (improvised explosive devices) are buried this year.

In regard to that painful spending plan everyone expects, I saw and heard something Thursday that I never dreamed I would see and hear.

I saw and heard two lawmakers tell Transportation Cabinet officials it really would be OK to hold off on some projects in their districts.

This astonishing event occurred after cabinet officials gave a bleak assessment of the Road Fund to a House budget review subcommittee.

“We have a six-year road plan that looks like a 15-year wish,” cabinet Secretary Joe Prather told the lawmakers.

What the cabinet doesn’t have is money. In fact, given the latest consensus revenue forecast and the projects that are already in the works, cabinet officials said it is possible the Road Fund could be depleted or perhaps dip into the red in October 2009.

“The good news is that we have 18 months to deal with the really bad news,” said Mike Hancock, the cabinet’s chief of staff.

That led Rep. Richard Henderson, D-Jeffersonville, to suggest that a $40 million project in his district could be delayed. Rep. Fred Nesler, D-Mayfield, added that some projects in his district could wait, as well.

When legislators start volunteering to do without scheduled road projects, there are only two explanations. Either the budget outlook is as bad as everyone claims, or those lawmakers’ bodies have been invaded by aliens.

Campaigning on the public dime

During an update briefing on the status of the Road Fund Thursday, Transportation Cabinet officials showed a legislative subcommittee a chart of monthly spending from the highway construction contingency account from July 2001 through December 2007. Between July 2001 and April 2007 the spending topped $10 million in only one month, April 2004, when it reached $11.8 million.

But in May 2007, former Gov. Ernie Fletcher's administration $12.3 million from the account. In September, they topped that by spending $12.8 million. They nearly doubled that in October, spending $25.3 million.

In May, Fletcher faced a contested Republican primary against former U.S. Rep. Anne Northup and Paducah businessman Billy Harper. In September and October, he was trailing Democratic challenger Steve Beshear by a wide margin in the polls.

A total of $65 million was budget to the account for this fiscal year, which began July 1. Transportation Secretary told the committee there was $307,000 left when he arrived in December.

Taxing smokes, mending fences, etc.

1. Momentum for raising the cigarette tax is building rapidly in the state House of Representatives. Nothing approaching the 75-cent increase advocated by the coalition of interest groups that have joined together as Kentucky Voices for Health. The current discussions involve an increase in the range of 22 cents to 30 cents. A 22-cent increase would keep a carton of cigarettes $1 cheaper in Kentucky than in Tennessee. The $1 figure is thought to have psychological value in luring Tennesseans across the border to buy their smokes here. A growing number of lawmakers find an increase in the cigarette tax more appealing than significant cuts to the education and social services budgets. They also know that recent polls show public support for higher cigarette taxes. And some thought has been given to the idea that Kentucky lawmakers need to act before Congress raises the national tax, which would make an increase in the state tax more politically difficult.

2. Gov. Steve Beshear spent at least part of Wednesday in Lt. Gov. Daniel Mongiardo's old Senate district, trying to mend Democratic fences damaged in a dispute over the nomination for the vacant seat. The nomination went to former state Rep. Scott Alexander of Hazard, but the way he was selected prompted protests from former state Rep. Roger Noe and Democratic leaders in Harlan County. Beshear is trying to sooth hurt feelings and bring all the Democrats in the 30th District because keeping Mongiardo's seat in D hands is considered one of the governor's highest political priorities.

3. Rep. Kathy Stein of Lexington is the most liberal Democrat in the House. Rep. Bob Damron of Nicholasville is one of the party's more conservative members. They differ on many issues, including guns. This year, Stein and Damron sit beside each other on the House floor. Knowing Stein, I'm sure that, as the Judiciary Committee chairman, she also hopes to "sit" on the bill Damron introduced this week that would allow guns in vehicles parked on university campuses.

Cheering when there's little to cheer about

Today's column:

FRANKFORT — Following Gov. Steve Beshear’s first State of the Commonwealth Address, some lawmakers and observers wondered aloud why he didn’t take the opportunity to make a pitch for casino gambling, his No. 1 campaign issue last year.

The answer is simple: Had he mentioned casinos in the same breath with the bad budgetary news he delivered Monday, he ran the risk of creating the perception that he is manipulating, or at least over-hyping, the state’s current fiscal problems in order to build momentum for a constitutional amendment on expanded gambling.

Better to keep the two issues completely separate than to make the folks who are going to feel the pain from this budget shortfall think their pain is either unnecessary or unnecessarily intense. There will be plenty of time to talk about casinos later.

Overall, Beshear’s speech managed to mix gloom and doom with hope and optimism.

“Frankly, the state of the commonwealth is not acceptable,” he said before outlining the state’s bleak fiscal situation, using it to explain why he can’t deliver on his campaign promises immediately.

At another point in his speech, he recounted some of the state’s unmet needs and some of the problems – such as drug abuse and poverty – that University of Kentucky President Lee Todd calls the “Kentucky uglies.”

But Beshear counted some of Kentucky’s blessings, too, ranging from a strong work ethic and natural resources to dedicated educators and patriotic members of the armed services.

And he called on Kentuckians to dream and to use their imagination, not only to improve the state’s economic outlook but also to help make state government work better.

It was a more inspirational speech than his inaugural address last month. Nowhere near “ask what you can do for your country” inspirational, but still more inspirational.

It included a request for cooperation from lawmakers of both parties: “We will not always agree, but we must join together to get the important work of Kentucky done.”

What it did not include was an outright rejection of tax increases. He did say, “Raising taxes is and will continue to be a last resort as long as I’m governor of the commonwealth.” But that’s somewhat short of “read my lips: no new taxes.”

Beshear got into specifics on just two issues.

He made a pitch for the ethics package he proposed last week, which includes a constitutional amendment that would limit a governor’s pardon powers.

And he talked about a new direction for the state’s economic development efforts, one that would focus more on growing jobs in Kentucky than on luring jobs from outside the state.

Under the circumstances, it was a more optimistic speech than might have been expected. But then, the State of the Commonwealth Address has a way of bringing out the cheerleader in governors, even when there is little to cheer about.

Opening week: from gambling to ethics

Sunday's column:

FRANKFORT — Scenes from the first week of the General Assembly:

A work group appointed by House Speaker Jody Richards to study expanded gambling had plenty of questions for officials of the state’s four major racetracks when they testified in favor of casinos Wednesday.

But the next day, when opponents testified, lawmakers asked few questions.

However, don’t get the idea the lack of questioning of opponents is an indication that most members of the work group share their sentiments.

On the contrary, this panel appears heavily weighted in favor of approving an expanded gambling amendment.

Track officials were asked more questions because those on the panel who support expanded gambling and those who are leaning toward support were interested in knowing more of the details.

With the opponents, panel members were merely going through the motions of hearing the other side – politely, of course.

                                  * * *

Gov. Steve Beshear came up with one of the better lines of the week while addressing a group of journalists Thursday. After telling them he expected the cupboard would be bare when he took office, he quipped, “I just didn’t know that the cupboard was going to be gone, too.”

Addressing that same group of journalists, Richards noted that he has now served with eight governors. “They all had one thing in common,” he said. “They were broke when they came in. This one’s broker than usual.”

Not surprisingly, Senate President David Williams had a different perspective. “I don’t agree with the governor’s assessment that we have a revenue problem. ... I’m convinced that, collectively, we can put a good budget together.”

You see, when your party’s governor faces a budget shortfall, it’s a “crisis” because handling a “crisis” makes your guy look better.

But when it’s the other party’s governor, dealing with a shortfall is just all in a day’s work because minimizing the problem minimizes his accomplishments in addressing it.

                                   * * *

We all knew coming in that this was going to be the “Painful Budget Session” (“Chicken Little’s Sky Is Falling Session” if you’re Republican) and the “Casino Gambling Session.”

Last week, though, Rep. Mike Cherry, D-Princeton, pitched the idea that this could also be the “Ethics Session.”

Cherry is a lead sponsor on the executive branch ethics reforms Beshear has proposed, with the backing of the Executive Branch Ethics Commission. He is also a lead sponsor of a bill supported by the Legislative Ethics Commission that would strengthen ethical rules for lawmakers.

Neither of these measures will give the state perfect ethics laws. We’ll never get there. And if we do, people with questionable ethical standards will break a perfect law just as easily as an imperfect one.

But both of these measures propose solid improvements that would close existing loopholes, expand the statutes’ coverage and generally promote cleaner government.

In the executive branch bill, the inclusion of the attorney general and auditor in the appointment process for the ethics commission and the increased reporting by officials who establish legal defense funds are particularly noteworthy in the wake of the hiring scandal in former Gov. Ernie Fletcher’s administration.

(In that regard, it’s also good that Beshear has decided  he will go ahead and pursue putting constitutional limits on a governor’s pardon power in this session.)

And the best thing about the legislative ethics bill is that it would finally give the state a real “no cup of coffee” rule.

So, maybe Cherry was right. Maybe this will be an “Ethics Session.” Maybe. But this being the Kentucky General Assembly, I’m not holding my breath quite yet.

                                   * * *

OK, let’s all settle in and wait for the filing deadline that tells incumbents whether they have opposition or are free to cast a controversial vote or two.